Give life example to suggest how people could benefit from understanding the biases of probability judgement or decision making .

 

An example of how people could benefit from understanding the biases of probability judgment or decision making is the detailed and thorough understanding of economic decision making, but it will only be possible if we know how man makes probability judgment. Economic theory is the overall supposed conclusion or decision which uses the basic law of probability theory. Second example is the decision making held by court. For example, we are able to know what is the probability of a red cab being involved in an accident as the witness stated. Therefore, understanding the biases of probability judgment or decision making can help us to know the possibility and arrive at a result or conclusion.